Question

question 17 of 20 : select the best answer for the question 17. suppose your bank honors a check for which you dont have sufficient funds in your checking account. this action means that youve arranged beforehand for a/an ______ loan. a. personal b. overdraft c. mortgage d. installment

Explanation:

To solve this, we analyze each option:

• Option A: A personal loan is a general loan for personal use, not related to insufficient funds in a checking account.
• Option B: An overdraft loan is specifically an arrangement where a bank allows a customer to withdraw more money from their checking account than they have, covering the shortfall. This matches the scenario.
• Option C: A mortgage is a loan to purchase real estate, not related to checking account funds.
• Option D: An installment loan is repaid in installments over time, not for covering checking account shortfalls.

Answer:

B. overdraft